Question: REAL ESTATE INVESTMENTS An investor purchased a piece of waterfront property. Because of the development of a marina in the vicinity, the market value of the property is expected to increase according to the rule
V(t) = 80,000e√t/2
where V(t) is measured in dollars and t is the time (in yr) from the present. If the rate of appreciation is expected to be 9% compounded continuously for the next 8 yr, find an expression for the present value P(t) of the property's market price (PMP) valid for the next 8 yr. What is P(t) expected to be in 4 yr?